01 Introduction To IT & Is v.2

What is Information?
before we really talk about Information
Systems
Information is:
Knowledge derived from data.
Data presented in a meaningful context.
Data processed by summing, ordering,
averaging, grouping, comparing, or other

similar operations.
A difference that makes a difference.
Data
Informatio
(inpu
t)
Processing
n (output)
Data vs. Information

Data
raw facts
no context
just numbers and
text
Information
data with context
processed data
value-added to data
summarized
organized
analyzed

Data: 51009
Information:
5/10/09
$51,009
51009 Zip Code of Gary Indiana

Data
6.34
6.45
Informatio
SIRIUS SATELLITE RADIO INC.
n
$7.20
6.39
$7.00
6.57
$6.80
6.64
6.71
6.82
Stock Price
6.62
$6.60
$6.40
$6.20
7.12
$6.00
7.06
$5.80
1
Last 10 Days
10
Data Information Knowledge

Data
Summarizing the data
Averaging the data
Selecting part of the data
Graphing the data
Adding context
Adding value
Information

Information
How is the info tied to outcomes?
Are there any patterns in the info?
What info is relevant to the
problem?
How does this info effect the
system?
What is the best way to use the
info?
How can we add more value to the
info?
Knowledge
Information vs. Data is Subjective
What some people consider information,
others think of as raw data.

Context changes occur in information
systems when
the output of one system is input to
another system
1-8
Information is Subjective
Data in a manufacturing system may be very
important to that system. When its

combined with data from other systems, it
may lose its prominence in the larger
context.
Sales IS
Financial IS
Manufacturin
g IS
1-9
One Users Information is Another

Users Data
1-10
Characteristics of Good
Information?
Accurate entering incorrect sales data creates false
information.
Timely knowing that production doesnt have enough raw
materials for next weeks schedule wont be useful

information three weeks from now.
Relevant if your boss needs to know how many
shipments were late last month, you shouldnt give him a

list of all items that shipped.
Worth its cost is it cost worthy to map out the entire U.S.
if you only need one state?
These are just a few characteristics that are important...

1-11
Information Technology vs. Information

Systems?
Because many people confuse the two terms,
compare what each one consists of and how the
two differ.
Information technology
pertains to
New Products
New Methods
Inventions
Standards
Information Systems
include five components

Hardware
Software
Data
Procedures
People
Information technology drives the development of

new information systems.
1-12
Information Technology vs. Information Systems?
1-13
Hardware and Software

Basics
14
Hardware Components
Central processing unit (CPU)
Arithmetic/logic unit (ALU): performs
calculations and makes logical comparisons

Control unit: accesses, decodes and
coordinates data in CPU and other devices
Primary memory: holds program instructions
and data for processing

Secondary storage: more permanent storage
Input and output devices
Communications devices
15
Hardware Components (continued)
Figure 2.1: Hardware Components

16
Processing and Memory Devices:

Power and Speed
System unit
Houses the components responsible for processing
(the CPU and memory)

All other computer system devices are linked either
directly or indirectly into the system unit housing
Clock speed
series of electronic pulses produced at a
predetermined rate that affects machine cycle time

Clock speed is often measured in megahertz (MHz)
for millions or gigahertz(GHz) for billions of cycles
per second
17
Memory and Storage

Characteristics and Functions
Types of Memory
Random access memory (RAM)
Temporary
Volatile
Read-only memory (ROM)
Usually nonvolatile
Secondary storage
Also called permanent storage
Nonvolatile
Greater capacity and greater economy than memory
Measured in bytes: kilo, mega, giga, tera
Different access methods
Sequential access: data must be accessed in the order in which it is stored
Sequential access storage devices (SASDs)
Direct access: data can be retrieved in any order
Direct access storage devices (DASDs)
18
Secondary Storage Devices

Magnetic tapes
Secondary storage used primarily for backups
Magnetic disks
Direct access secondary storage, e.g., hard disk
RAID
Stores extra bits so that data can be reconstructed if system fails
SAN
Provides high-speed connections between data storage
devices and computers over a network Optical disks

Direct access optical disc, e.g., CD-ROM
Digital video disk (DVD)

Stores several gigabytes of data
Flash memory
Nonvolatile silicon computer chip
19
Input Devices
Personal computer input devices
Keyboard, mouse
Speech-recognition technology
Input devices that recognize human speech b
Digital cameras
Input device used with PC to record/store images in digital form
Terminals
Input and display devices that perform data entry and input at the same
time
Touch-sensitive screens
Allow display screens to act as input devices as well as output devices
Bar-code scanners
Employs a laser scanner to read a bar-coded label
Magnetic ink character recognition (MICR) devices

Code data on banking forms, such as checks Pen input devices
Activate a command, enter handwritten notes, and draw objects
Radio Frequency Identification (RFID)

Employs a microchip with an antenna to broadcast its unique identifier
and location to a receiver
20
Output Devices
Display monitors (CRTs)
Output quality measured by number of pixels and dot pitch
Liquid crystal displays (LCDs)

Easier on eyes, use less electricity, take up less space than
CRTs
Organic light-emitting diodes (OLEDs)
Directly emits light rather than using backlight
Sharper colors and thinner displays Printers and
plotters: hard copy output

Printers: laser, inkjet
Plotters: used for general design work
Digital audio player

Stores, organizes, and plays digital music files
21
Overview of Software
Computer programs: sequences of
instructions for the computer

Documentation: describes program
functions
Systems software: coordinates the
activities of hardware and programs
Application software: helps users solve
particular problems
22
Systems Software
Controlling operations of computer hardware
Supports application programs problem-solving capabilities
Different types of systems software include:
Operating systems programs that control the hardware and
interface with applications

Common hardware functions
Get
input (e.g., keyboard)

Retrieve data from disks and store data on disks
Display information on a monitor or printer
User interface
Allows individuals to access and command the computer system
Command-based user interface: uses text commands
Graphical user interface (GUI): uses icons and menus to send
commands to the computer system
Utility programs
Application Software
Give users the ability to solve problems and
perform specific tasks

Interact with systems software; systems
software then directs the hardware to
perform tasks
Proprietary software: unique program
for a specific application, usually developed
and owned by a single company
Off-the-shelf software: existing software
program that can be purchased
Customized package
24
Personal Application Software

Serves the needs of an individual user
Includes personal productivity software
Enables users to improve their personal
effectiveness
25

(continued)
Table 2.7: Examples of Personal Productivity Software

26

(continued)
Table 2.7: Examples of Personal Productivity Software

(continued)
27
Workgroup Application
Software
Workgroup application software: support
teamwork, whether people are in the same

location or dispersed around the world
Groupware: software that helps groups of
people work together more efficiently and
effectively
28
Enterprise Application
Software
Software that benefits an entire
organization
Enterprise resource planning (ERP)
software: programs that manage a
companys vital business operations for an
entire multisite, global organization
29
Enterprise Application Software

(continued)
Table 2.10: Examples of Enterprise Application Software

30
Information, Decision Support,

and Specialized Software
Used in businesses of all sizes and types to
increase profits or reduce costs

Available in every industry
Example: analysis to increase the cure rate for
cancer
31
Data Management
Data Management
Without data and the ability to process it,
an organization could not successfully

complete most business activities
Data consists of raw facts
For data to be transformed into useful
information, it must first be organized in a
meaningful way
33
The Hierarchy of Data

Bit (a binary digit): a circuit that is either on or off
Byte: eight bits
Character: basic building block of information
Each byte represents a character
Can be an uppercase letter, lowercase letter, numeric
digit, or special symbol

Field: typically a name, number, or combination of
characters that describes an aspect of a business object

or activityRecord: a collection of related data fields
File: a collection of related records
Database: a collection of integrated and related files
Hierarchy of data: bits, characters, fields, records,
files, and databases
34
The Hierarchy of Data
Figure 3.1: The Hierarchy of Data

35
Data Entities, Attributes, and

Keys
Entity: a generalized class of people,
places, or things (objects) for which data is

collected, stored, and maintained
Attribute: characteristic of an entity
Data item: value of an attribute
Key: field or set of fields in a record that is
used to identify the record
Primary key: field or set of fields that
uniquely identifies the record
36
Data Entities, Attributes, and

Keys
Figure 3.2: Keys and Attributes

37
The Database Approach

Traditional approach to database
management
separate data files are created for each
application
Results in data redundancy (duplication)
Data redundancy conflicts with data integrity
Database approach to database
management:
pool of related data is shared by multiple
applications
Significant advantages over traditional approach
38
The Database Approach to Data

Management
Figure 3.3: The Database Approach to Data Management

39
Database Management Systems

(DBMS)
Interface between:
Database and application programs
Database and the user
Creating and implementing the right
database system ensures that the database

will support both business activities and
goals
DBMS: a group of programs used as an
interface between a database and application
programs or a database and the user
40
Overview of Database Types

Flat file
Simple database program whose records
have no relationship to one another

Single user
Only one person can use the database at a
time
Examples: Access, FileMaker, and InfoPath
Multiple user
Allows dozens or hundreds of people to
access the same database system at the

same time
Examples: Oracle, Sybase, and IBM
41
Distributed Databases
Distributed database
Data may be spread across several smaller
databases connected via telecommunications

devices
Corporations get more flexibility in how
databases are organized and used
Replicated database
Holds a duplicate set of frequently used data
42
Telecommunications
Basic Concepts of
Telecommunications
Telecommunications: electronic
transmission of signals for communications

Computer network: communications media,
devices, and software needed to connect
two or more computer systems or devices
Network types: personal area network
(PAN), local area network (LAN),
metropolitan area network (MAN), wide
area network (WAN), and international
networks
44
Grow, growing, grooooooowing

Users in
almost
200
countries
around
the world
are now
connecte
d to the
Internet.
The Internet
Internet: collection of interconnected
networks, all freely exchanging information

Internet Protocol (IP): communication
standard that enables traffic to be routed
from one network to another as needed
Uniform Resource Locator (URL): an
assigned address on the Internet for each
computer
46
Business Networks
Intranet: internal corporate network built
using Internet and World Wide Web

standards and protocols
Extranet: network based on Web
technologies that links selected resources
of a companys intranet with its customers,
suppliers, or other business partners
47
Systems Development
An Overview of Systems
Development
Managers and employees in all functional
areas work together in a business

information system
Users help and often lead the way with
development process
Participants in systems development:
Determine when a project fails
Are critical to systems development success
49
Participants in Systems
Development
Development team consists of the following:
Project managers: coordinate system
development effort
Stakeholders: directly or indirectly benefit from
the project
Users: interact with the system regularly
Systems analysts: analyze and design business
systems
Programmers: modify or develop programs to
satisfy user requirements
Various support personnel: specialists, vendors
50
Information Systems Planning and

Aligning Corporate and IS Goals
Information systems planning:
translating strategic and organizational

goals into systems development initiatives
Aligning organizational goals and IS goals is
critical for any successful systems
development effort
Determining whether organizational and IS
goals are aligned can be difficult
51
Information Systems Planning and Aligning

Corporate and IS Goals (continued)
Figure 8.2: Information Systems Planning

52
Systems Development Life

Cycles
The systems development process is also
called a systems development life cycle

(SDLC)
Common SDLCs
Prototyping
Rapid application development (RAD)
Systems
development approach that employs tools,
techniques, and methodologies designed to speed

application development
End-user development any systems

development project in which the primary effort is
undertaken by a combination of business managers
53
and users
Systems Development
Activities
Systems investigation:
problems and opportunities are identified and considered in light of
the goals of the business

Systems analysis:
study of existing systems and work processes to identify strengths,
weaknesses, and opportunities for improvement

Systems design:
defines how the information system will do what it must do to obtain
the problem solution

Systems implementation:
creation or acquisition of various system components detailed in the
systems design, assembling them, and placing the new or modified

system into operation
Systems maintenance and review:
ensures that the system operates as intended and modifies the
system so that it continues to meet changing business needs

54
The Principles of Information Technology

The Benefits of Information Technology
55
56
Attributes of Information
Quality
Organizational Dimensions of
Information
1-57
before we really talk about Information
Systems
Information is:
Knowledge derived from data.
Data presented in a meaningful context.
Data processed by summing, ordering,
averaging, grouping, comparing, or other

similar operations.
A difference that makes a difference.
Data
Informatio
(inpu
t)
Processing
n (output)

Data
raw facts
no context
just numbers and
text
Information
data with context
processed data
value-added to data
summarized
organized
analyzed

Data: 51009
Information:
5/10/09
$51,009
51009 Zip Code of Gary Indiana

Data
6.34
6.45
Informatio
SIRIUS SATELLITE RADIO INC.
n
$7.20
6.39
$7.00
6.57
$6.80
6.64
6.71
6.82
Stock Price
6.62
$6.60
$6.40
$6.20
7.12
$6.00
7.06
$5.80
1
Last 10 Days
10

Data
Summarizing the data
Averaging the data
Selecting part of the data
Graphing the data
Adding context
Adding value
Information

Information
How is the info tied to outcomes?
Are there any patterns in the info?
What info is relevant to the
problem?
How does this info effect the
system?
What is the best way to use the
info?
How can we add more value to the
info?
Knowledge
Information vs. Data is Subjective
What some people consider information,
others think of as raw data.

Context changes occur in information
systems when
the output of one system is input to
another system
1-64
Information is Subjective
Data in a manufacturing system may be very
important to that system. When its

combined with data from other systems, it
may lose its prominence in the larger
context.
Sales IS
Financial IS
Manufacturin
g IS
1-65
One Users Information is Another

Users Data
1-66
Characteristics of Good
Information?
Accurate entering incorrect sales data creates false
information.
Timely knowing that production doesnt have enough raw
materials for next weeks schedule wont be useful

information three weeks from now.
Relevant if your boss needs to know how many
shipments were late last month, you shouldnt give him a

list of all items that shipped.
Worth its cost is it cost worthy to map out the entire U.S.
if you only need one state?
These are just a few characteristics that are important...

1-67
Information Technology vs. Information

Systems?
Because many people confuse the two terms,
compare what each one consists of and how the
two differ.
Information technology
pertains to
New Products
New Methods
Inventions
Standards
Information Systems
include five components

Hardware
Software
Data
Procedures
People
Information technology drives the development of

new information systems.
1-68
Information Technology vs.

Information Systems?
Moores Law
The number of transistors per square inch on an
integrated chip doubles every 18 months.
Dramatic Reduction in Price/Performance Ratio

Ratio fallen dramatically for over 40 years and is
estimated to continue to fall in accordance with

Moores Law.
Enabled developments such as:

Laser printers, Graphical user interfaces, High-
speed communications, Cell phones, PDAs, Email,

Internet
1-69
Information Technology vs. Information Systems?
1-70
Evolution of Technology
Whats in that cloud anyway?
A quick trip inside the internet cloud
Evolution of Technology
Not-so-Famous Last Words
"I think
there is a
world
market for
maybe five
computers.
~Thomas Watson,
Chairman of IBM,
1943
What Is the Internet?

A network of networks, joining many
government, university and private

computers together and providing
an infrastructure for the use of E-mail, bulletin
boards, file archives, hypertext documents,
databases and other computational resources
The vast collection of computer networks
which form and act as a single huge network

for transport of data and messages across
distances which can be anywhere from the
same office to anywhere in the world.
Written by William F. Slater, III 1996

President of the Chicago Chapter of the Internet Society
Copyright 2002, William F. Slater, III, Chicago, IL, USA
Simply the internet it:

The largest network of networks in the
world.
Uses TCP/IP protocols (Transmission
Control Protocol/Internet Protocol) and
packet switching.
Runs on any communications substrate.
From Dr. Vinton Cerf,
Co-Creator of TCP/IP
A Brief Summary of the Evolution of the Internet

1945
TCP/IP
Created
ARPANET
1972
1969
Hypertext
Invented
1965
Packet
Switching
Invented
1964
First Vast
Computer
Network
Envisioned
1962
Silicon
A
Mathematical Chip
1958
Theory of
Memex Communication
1948
Conceived
1945
Copyright 2002, William F. Slater, III, Chicago, IL, USA
Mosaic
WWW
Created
Internet
Created
1993
Named
1989
and
Goes
TCP/IP
1984
2007
Internet Web 2.0

Boom
2003
Age of
& Bust
2007
eCommerce 2001
Begins
1995
Early Developers
Ted Nelson
Paul Baran
Vannevar Bush
Claude ShannonJ. C. R. Licklider
Vinton
Cerf
Leonard
Kleinroc
k
Jon Postel
Bob Metcalfe
Lawrence Roberts
Tim
BernersLee
Steve Crocker
Esther
Dyson
Mark
Andreesen
Robert Kahn
You are here
Historical Context
Invented in the late 50s,
Bob Taylor, JCR Licklider,

Ivan Sutherland,
Larry Roberts, Alan Kay et al
Big ideas: packet switching, self contained
messages
The Internet got started as the Arpanet

inherently decentralized
designed to survive atomic attack
designed to scale in a biological manner
Bring on the applications

Email is the first killer app, and was
added right away

SMTP - Simple Mail Transfer Protocol
POP3 - Post Office Protocol v3
Other document transfers were invented over
time:
FTP - File Transfer Protocol
NNTP (Netnews) - threaded discussions
Gopher - text search and archive
Telnet- allows a user to log-in to a remote
computer
and many more
Power to the people

1992 - The first audio and video broadcasts take place over the
"MBONE." More than 1,000,000 hosts are part of the Internet.

Let there be browsers HTML display applications that use HTTP
to send and receive stuff
1993 - Mosaic, the first graphical user interface to the WWW
developed by Marc Andreessen and NCSA and the University of

Illinois becomes available
Later developed NETSCAPE
Traffic on the Internet expands at a 341,634% annual growth rate.
Internet Growth Trends

1977: 111 hosts on Internet
1981: 213 hosts
1983: 562 hosts
1984: 1,000 hosts
1986: 5,000 hosts
1987: 10,000 hosts
1989: 100,000 hosts
1992: 1,000,000 hosts
2001: 150 175 million hosts
2002: over 200 million hosts
By 2010, about 80% of the planet will be on the
Internet
By September 2002
The Internet Reached Two

Important Milestones:
> 200,000,000 IP Hosts
> 840,000,000 Users
Netsizer.com from Telcordia
Web 2.0
second generation of Web-based services
Communication tools
Collaborative technologies
Social networking sites
"Web 2.0 is the business revolution in the computer
industry caused by the move to the internet as

platform, and an attempt to understand the rules
for success on that new platform. Chief among
those rules is this: Build applications that harness
network effects to get better the more people use
them.
~ Tim OReilly
Social Enviornments
Wikipedia
The biggest multilingual free-content
encyclopedia on the Internet. Over two

million articles and still growing.
Blog
user-generated website where entries are
made in journal style (WEB LOG)

Flickr
photo sharing website and web services
suite, and an online community platform,

uses tags
Social Enviornments
My Space
social networking website offering an interactive, user-submitted
network of friends, personal profiles, blogs, groups, photos, music
and videos
106 million accounts as of September 8, 2006
230,000 new registrations per day
Flickr
photo sharing website and web services suite, and an online
community platform, uses tags
Craigs List
centralized network of online urban communities, featuring free
classified advertisements (with jobs, housing, personals, for
sale/barter/wanted, services, community, gigs and resumes
categories) and forums sorted by various topics
over 5 billion page views per month to 10 million unique visitors
34th place overall among web sites world wide
8th place overall among web sites in the United States
Social Environments
YouTube
popular free video sharing website which lets users
upload, view, and share video clips purchased in

Nov 2006 by google for $1.65 Billion in google stock
Judson Laipply
Evolution of Dance clip, which is the #1 Most Viewed
All Time Video, #1 Top Favorites Video and #4 Most
Discussed Video on YouTube.com
amassed over 10 millions views in under two weeks
was featured on CNN, MSN, E!, USA Today, Good
Morning America, The Today Show, AOL, and Google
As of January 29, 2007, the number of views on
YouTube.com hit 40 million.
Social Enviornments
Del.icio.us
a social bookmarking web service for storing,
sharing, and discovering web bookmarks.

ePortfolios
a web-based information management
system that uses electronic media and

services built and maintained by the learner
used, in part, to demonstrate competence,
store research materials and reflect on
learning.
What is a WIKI?
About WIKIs
website that allows the
visitors themselves to easily

add, remove, and otherwise
edit and change available
content, typically without the
need for registration.
ease of interaction and
operation makes a wiki an
effective tool for mass
collaborative authoring
And now
how to harness this expansive
resource
World Wide Web
Questions?
Basics of Information Systems

Material from
Fundamentals of Information Systems, Fourth Edition
By
Ralph Stair and George Reynolds
97
Information Concepts:
Data, Information, and Knowledge
Data: raw facts
Alphanumeric, image, audio, and video
Information: collection of facts organized in
such a way that they have additional value

beyond the value of the facts themselves
Value of Information is directly linked
to how it helps decision makers achieve their
organizations goals and can be measured
in time required to make a decision
Increased profits to the company
98
Data, Information, and Knowledge
Figure 1.2: The Process of Transforming Data into Information

99
The Characteristics of Valuable Information
Table 1.2: Characteristics of Valuable Information

100
The Characteristics of Valuable Information

(continued)
Table 1.2: Characteristics of Valuable Information (continued)

101
What Is an Information
System?
Figure 1.3: The Components of any Information System

102
Computer-Based Information
Systems
Computer-based information system
(CBIS): single set of hardware, software,

databases, telecommunications, people,
and procedures configured to collect,
manipulate, store, and process data into
information
103
Computer-Based Information
Systems
CBIS components
Hardware: computer equipment used to perform
input, processing, and output activities

Software: computer programs that govern the
operation of the computer
Database: organized collection of facts and
information
Telecommunications: electronic transmission of
signals for communications
Networks: connect computers and equipment in
a building, around the country, and around the
world
104
Business Information
Systems
Most common types of information systems
used in business organizations

Electronic and mobile commerce systems
Transaction processing systems
Management information systems
Decision support systems
Specialized business information systems
105
Electronic and Mobile

Commerce
E-commerce: any business transaction
executed electronically between parties

Companies (B2B)
Companies and consumers (B2C)
Consumers and other consumers (C2C)
Companies and the public sector
Consumers and the public sector
106
Transaction Processing
Systems
Transaction: business-related exchange
Payments to employees
Sales to customers
Payments to suppliers
Transaction processing system (TPS):
organized collection of people, procedures,

software, databases, and devices used to
record completed business transactions
107
Additional Business Information

Systems
Management Information Systems (MIS)
provide routine information to managers and
decision makers
Knowledge Management Systems (KMS)
create, store, share, and use the organizations
knowledge and experience

Artificial intelligence (AI)
field in which the computer system takes on the
characteristics of human intelligence

Decision support system (DSS)
used to support problem-specific decision making
108
Chapter 5
IT Infrastructure
and Emerging
Technologies
Management Information Systems

Chapter 5 IT Infrastructure and Emerging Technologies
LEARNING OBJECTIVES
Define IT infrastructure and describe its

components.
Identify and describe the stages of IT
infrastructure evolution.
Identify and describe the technology drivers
of IT infrastructure evolution.
Assess contemporary computer hardware
platform trends.
Assess contemporary software platform
trends.
Evaluate the challenges of managing IT
infrastructure and management solutions.

DreamWorks Animation Turns to Technology for Production
Support
Problem: Gaining an edge in an intensely competitive
market, working with technology-intensive processes.

Solutions: Deploy custom-built E-motion software to
render more realistic animations and increase quality of

films.
HP processors, Linux, and high-speed network facilitate
rapid production schedule, increasing productivity.

Demonstrates ITs role in strengthening a firms product
and productivity
Illustrates digital technologys role in gaining an
advantage in a fiercely competitive market.

IT Infrastructure
Defining IT infrastructure:
Set of physical devices and software required to

operate enterprise
Set of firmwide services including:
Computing platform providing computing services

Telecommunications services
Data management services
Application software services
Physical facilities management services
IT management, education, research and development
services
IT as services perspective more accurate view of

value of investments

IT Infrastructure
Connection Between the Firm, IT Infrastructure, and

Business Capabilities
The services a firm

is capable of
providing to its
customers,
suppliers, and
employees are a
direct function of its
IT infrastructure.
Ideally, this
infrastructure
should support the
firms business and
information systems
strategy. New
information
technologies have a
powerful impact on
business and IT
strategies, as well
as the services that
can be provided to
customers.
Figure 5-1

IT Infrastructure
Evolution of IT infrastructure: 19502007

Electronic accounting machine era: 1930-1950
Specialized machines sorting computer cards, accumulating
totals, printing reports
General-purpose mainframe and minicomputer era:

1959 to present
1958 IBM first mainframes introduced, eventually used to
support thousands of online remote terminals
1965 less expensive DEC minicomputers introduced, allowing
decentralized computing

IT Infrastructure
Eras in IT Infrastructure Evolution
Illustrated here are the typical computing configurations

characterizing each of the five eras of IT infrastructure evolution.
Figure 5-2A

IT Infrastructure
Personal computer era: 1981 to present

1981 Introduction of IBM PC
Proliferation in 80s, 90s resulted in growth of personal
software
Client/server era: 1983 to present

Desktop clients networked to servers, with processing work
split between clients and servers
Network may be two-tiered or multitiered (N-tiered)
Various types of servers (network, application, Web)
Enterprise Internet computing era: 1992 to present

Move toward integrating disparate networks, applications
using Internet standards and enterprise applications

IT Infrastructure
Eras in IT Infrastructure Evolution (cont.)
Figure 5-2B

IT Infrastructure
Eras in IT Infrastructure Evolution (cont.)
Figure 5-2C

IT Infrastructure
A Multitiered Client/Server Network (N-Tier)
In a multitiered client/server network, client requests for service are handled by

different levels of servers.
Figure 5-3

IT Infrastructure
Technology drivers of infrastructure

evolution (cont.)
Metcalfes Law and network economics
Value or power of a network grows exponentially as a

function of the number of network members
As network members increase, more people want to
use it (demand for network access increases).

IT Infrastructure
Declining communication costs and the
Internet
An estimated 1.1 billion people worldwide have
Internet access
As communication costs fall toward a very small
number and approach 0, utilization of
communication and computing facilities explodes.

IT Infrastructure
Technology drivers of infrastructure

evolution (cont.)
Standards and network effects
Technology standards:
Specifications that establish the compatibility of products
and the ability to communicate in a network
Unleash powerful economies of scale and result in price
declines as manufacturers focus on the products built to a
single standard.

Infrastructure Components
IT Infrastructure has 7 main

components
Networking and telecommunications equipment and services
(50% of U.S. expenditures)
Enterprise and other IT software applications (19%)
Computer hardware platforms (9%)
Consulting services and system integrators (9%)
Operating system platforms (7%)
Database management and storage (3%)
Internet platforms (2%)
The IT Infrastructure bionetwork
There are seven

major components
that must be
coordinated to
provide the firm
with a coherent IT
infrastructure.
Listed here are
major technologies
and suppliers for
each component.

Computer hardware platforms

Client machines
Desktop PCs, mobile computing devices PDAs, laptops
Servers
Blade servers: ultrathin computers stored in racks
Mainframes:
IBM mainframe equivalent to thousands of blade
servers
Top chip producers: AMD, Intel, IBM
Top firms: IBM, HP, Dell, Sun Microsystems

Computer software platforms

Operating systems
Client level: 95% run Microsoft Windows (XP, 2000, CE,
etc.)
Server level: 85% run Unix or Linux
Enterprise software applications
Enterprise application providers: SAP and Oracle
Middleware providers: BEA

Data management and storage

Database software: IBM (DB2), Oracle, Microsoft (SQL Server),
Sybase (Adaptive Server Enterprise), MySQL
Physical data storage: EMC Corp (large-scale systems), Seagate,
Maxtor, Western Digital
Storage area networks: connect multiple storage devices on
dedicated network

Networking/telecommunications
platforms
Telecommunication services
Telecommunications, cable, telephone company charges for
voice lines and Internet access
MCI, AT&T, regional providers (Verizon)
Network operating systems:
Windows Server, Novell, Linux, Unix
Network hardware providers: Cisco, Lucent, Nortel, Juniper
Networks

Internet platforms
Hardware, software, management services to support company
Web sites, (including Web hosting services) intranets, extranets
Internet hardware server market: Dell, HP/Compaq, IBM
Web development tools/suites: Microsoft (FrontPage, .NET) IBM
(WebSphere) Sun (Java), independent software developers:
Macromedia/Adobe, RealMedia

Consulting and system integration

services
Even large firms do not have resources for full range of support
for new, complex infrastructure
Software integration: ensuring new infrastructure works with
legacy systems
Legacy systems: older TPS created for mainframes that would be
too costly to replace or redesign
Accenture, PwC Consulting

Hardware Platform Trends and Emerging
Technologies
While cost of computing is lower, infrastructure costs have

expanded
More computing, more sophisticated computing, increased

consumer expectations, need for security
Integration of computing and telecommunications platforms
Client level convergence: Handhelds/Cell phones

Server, network level convergence: Internet telephony
Cloud Computing :Network becoming source of computing
power

Technologies
Grid computing
Connects geographically remote computers into a single

network to combine processing power and create virtual
supercomputer
Provides cost savings, speed, agility
On-demand computing (utility computing)
Off-loading peak demand for computing power to remote,

large-scale data processing centers
Lowers cost, risks of hardware investment, provides agility

Technologies
Autonomic computing
Industry-wide effort to develop systems that can

configure, optimize themselves, heal themselves when
broken, and protect themselves from outside intruders
Similar to self-updating antivirus software; Apple and
Microsoft both use automatic updates
Edge computing
Multitier, load-balancing for Web-based applications

Significant parts of processing performed by less
expensive servers located nearby user
Increases response time and lowers technology costs
Akamai: Internet edge provider

Edge Computing Platform
Edge
computing
involves the
use of the
Internet to
balance the
processing load
of enterprise
platforms
across the
client and edge
computing
Figure 5-11

Technologies
Virtualization
Presenting set of computing resources (such as computing

power or data storage) so they can be accessed in ways
not restricted by physical configuration or geographic
location.
Server virtualization: Running more than one operating
system at same time on single machine.
Fewer computers required to process same work
Multicore processors
Integrated circuit with two or more processors

Reduces power requirements and heat

Software Platform Trends and Emerging
Technologies
Linux and open-source software
Open-source software: Produced by community of

programmers, free and modifiable by user
Linux: Open-source software OS
6% new PCs in 2005 were Linux (U.S.)
23% market share as LAN server (U.S.)
Java
Object-oriented programming language (Sun

Microsystems)
Operating system, processor-independent (Java Virtual
Machine)
Leading programming environment for Web
Applets
E-commerce applications

Technologies
Is It Time for Open-Source?
Read the Interactive Session: Technology, and then discuss

the following questions:
What problems do Linux and other open-source

software address? How does open-source software
help solve these problems?
What issues and challenges do open-source
software present? What can be done to address
these issues?
What are the business as well as the technology
issues that should be addressed when deciding
whether to use open-source software?

Technologies
Software for enterprise integration

Integration of legacy software an urgent software priority for U.S.
firms
Middleware: Software that connects two separate applications
Enterprise application integration (EAI) software: Enables
multiple systems to exchange data using single software hub

Enterprise Application Integration (EAI) Software Versus

Traditional Integration
EAI software (a) uses special middleware that creates a common platform with which all
applications can freely communicate with each other. EAI requires much less
programming than traditional point-to-point
integration
Figure
5-12 (b).

Technologies
Web Services
Software components that exchange information using

Web standards and languages
XML: Extensible Markup Language
More powerful and flexible than HTML
Tagging allows computers to process data automatically
SOAP: Simple Object Access Protocol

Rules for structuring messages enabling applications to pass
data and instructions
WSDL: Web Services Description Language

Framework for describing Web service and capabilities
UDDI: Universal Description, Discovery, and Integration

Directory for locating Web services

Technologies
SOA: Service-oriented architecture
Set of self-contained services that communicate with each

other to create a working software application
Software developers reuse these services in other
combinations to assemble other applications as needed.
E.g. an invoice service to serve whole firm for calculating
and sending printed invoices
Amazon.com:
Direct result of SOA services for interfaces, billing, thirdparty providers; Amazons Merchant Services
Dollar Rent A Car
Uses Web services to link online booking system with
Southwest Airlines Web site

Management Issues
How Dollar Rent a Car Uses Web Services
Dollar Rent A Car

uses Web services
to provide a
standard
intermediate layer
of software to talk
to other companies
information
systems. Dollar
Rent A Car can use
this set of Web
services to link to
other companies
information systems
without having to
build a separate link
to each firms
Figure 5-13

Technologies
Ajax
Software technique for allowing client and server to hold

conversation in background, so browser page does not
need to be fully reloaded. Google Maps.
Web-based software tools
Googles online spreadsheet and word processing
Mashups
Combinations of two or more online applications; e.g.

combining mapping software (Google Maps) with local
content

Technologies
Web 2.0 key concepts
Web becoming collection of capabilities, rather than pages

Services
Control over unique data sources
Users as co-developers
Harnessing collective intelligence
Leveraging long tail through customer self-service
Software above level of single device
Lightweight user interfaces, development models, and
business models

Technologies
Changing sources of software:

Software packages and suites
Complex, enterprise software systems

Application service providers (ASPs)
Business that delivers and manages applications and

computer services from remote computer centers to
multiple users using the Internet or a private network
Outsourcing
Domestic or offshore
Today, 1/3 U.S. firms outsource software
development

Management Issues
The Changing Sources of Software
U.S. firms will

spend nearly $340
billion on software
in 2006. Over 30
percent of that
software will come
from outsourcing
its development
and operation to
outside firms, and
another 15 percent
will come from
purchasing the
service from
application service
providers either on
the Web or through
traditional
channels.
Figure 5-14

Management Issues
Dealing with scalability and change

As firms shrink or grow, IT needs to be flexible and scalable.
Easier said than done.
How does firm remain flexible and still make long term
investments?
Scalability: Ability to expand to serve larger number of users

Management Issues
Management and governance

Who controls IT infrastructure
Centralized/decentralized
How are costs allocated between divisions,
departments?

Management Issues
Making wise infrastructure

investments
Amount to spend on IT is complex question
Rent vs. buy, outsourcing
Competitive forces model for IT

infrastructure investment
Market demand for firms services

Firms business strategy
Firms IT strategy, infrastructure, and cost
Information technology assessment
Competitor firm services
Competitor firm IT infrastructure investments

Management Issues
Competitive Forces Model for IT Infrastructure
There are six factors you can use to answer the question, How much should
our firm spend on IT infrastructure?
Figure 5-15

Management Issues
Total Cost of Ownership of Technology

Assets
TCO model: Used to analyze direct and indirect costs of systems
Hardware, software account for only about 20% of TCO
Other costs include: Installation, training, support,
maintenance, infrastructure, downtime, space and energy
TCO can be reduced through greater centralization and
standardization of hardware and software resources
What is IS?
IS a set of interrelated components
working together to collect, retrieve,

process, store, and distribute information
for the purpose of facilitating planning,
control, coordination, analysis, and decision
making in business organizations
Input-process-output perspective
People-organization-technology perspective
Choice Hotels Reservation

System example:
Technology the means by which data is
transformed and organized for business use:

Hardware
Software
Database
Telecommunication
People the users of IS

Organization -- a collection of functional units
working together to achieve a common goal
Functional units of
business organizations:
production
sales/marketing
finance/accounting
human resources
maximize profit by producing

goods and/or services
Functional Areas of
Business
The manufacturing and production
function is responsible for producing the

firm's goods and services. There are three
stages of the manufacturing/ production
process:
inbound logistics
production
outbound logistics
Functional Areas of
Business
The sales and marketing function is
responsible for finding customers for the

firm's product or service and selling the
firm's product or service to those
customers. The sales and marketing
process consists of
identifying and creating markets
developing markets
maintaining markets
Functional Areas of
Business
The finance and accounting function is
responsible for managing the firm's

financial assets and maintaining the firm's
financial records. The finance process
involves managing the firm's financial
assets, whereas the accounting process is
involved primarily in financial record
keeping.
Functional Areas of
Business
The human resource function is
responsible for attracting and maintaining

an appropriate work force for the firm. The
human resources process entails
attracting the work force
developing the firm's work force to meet the
firm's personnel needs

maintaining the work force
Computer vs IS literacy
IS in Business
Business functions
Business processes
A series of interrelated activities through
which work is organized and focused to

produce a product or service
Business levels
Strategic (long range planning)
Tactical (co-ordinate & supervise)
Operational (produce product & service)
The order generation and fulfillment process (Fig. 2.2)
Role of IS in Business
Competitive advantage
Low-cost (value chain)
Market niche
Product differentiation
Customer loyalty
Globalization
People (language)
Organization (culture)
Technology (telecommunication)
The value chain views the firm as a series of basic activities that
add value to a firm's products or services (Fig. 3-2)
Primary activities
inbound logistics,
operations,
outbound logistics,
sales and marketing
service
Support activities
administration and management
human resources
technology and procurement.
Quality
Process simplification
Benchmarking
Customer focus
Cycle time reduction
Improve design & production
Error reduction
Reengineering
Business processes redesign
Ethical & social responsibility
Information rights & privacy
Intellectual property
Accountability & liability
Quality of life
IS Approach to Problem
Solving
Systems Analysis
Systems Design
Systems Analysis & Design

Systems Analysis
Problem analysis (what)
Information gathering (where & why)
Decision making (how)
Establish objectives
Determine feasibility
Choose best solution
Systems Design (Input, Process, Output,
Procedures, Control)
Logical design
Systems Analysis & Design

Systems Design
Logical design (what will the system do?)
Input: content, format, source, volume, frequency, timing
Process: rule, model, formula, timing
Output: content, format, organization, volume, freq., timing
Storage: data, format, organization, relationship, volume
Procedure: manual activities, rule, sequence, timing, location
Control: security, accuracy, validity, supervision
Physical design (how the system will work?)

Input: keyboard, voice, scanner
Process: PC, operating system, software
Output: print-outs, files, audio
Storage: tape, CD
Procedure: batching, backup, auditing, data entry
Control: batch control, password, audit logs
Implementation (coding, testing, training)
Technology perspective to
problem solving
Organizational perspective to problem solving
People perspective to
problem solving
Decentralized Computing, Share

Information, & Mobile Computing
Modeling a System
Model
An abstraction or an approximation that is
used to represent reality
Types of models
Narrative (descriptive)
Physical
Schematic
Mathematical
ITU Management Faculty MIS
System Development
Loop
Systems
development
IMPLEMENTING THE
Systems
implementation SOLUTION : Building, Project,
Documentation
Training
Structural
Change
(+Revision)
Hands-on work, Closing the

Gap
PERFORMANCE
Systems
EVALUATION :
Review And Audit Control, Check,
Measuring the Gap
Corrective Actions
Preventive Actions
Systems
design
DEFINING THE PROBLEM : Understanding the

current system or need for the system
Requirements List, Contract, What is the
Gap?
FINDING THE SOLUTION : Designing/Defining
the needed/required system
Specifications, How it should be?
Revisions
Modifications
Systems
analysis
Systems
maintenance
and improvement

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What is Information?

before we really talk about Information

averaging, grouping, comparing, or other

Data vs. Information

Data vs. Information

Data vs. Information

Data Information Knowledge

Data Information Knowledge

others think of as raw data.

important to that system. When its

One Users Information is Another

Timely knowing that production doesnt have enough raw

materials for next weeks schedule wont be useful

Relevant if your boss needs to know how many

shipments were late last month, you shouldnt give him a

if you only need one state?

These are just a few characteristics that are important...

Information Technology vs. Information

include five components

Information technology drives the development of

Information Technology vs. Information Systems?

Hardware and Software

calculations and makes logical comparisons

and data for processing

Hardware Components (continued)

Figure 2.1: Hardware Components

Processing and Memory Devices:

(the CPU and memory)

predetermined rate that affects machine cycle time

Memory and Storage

Secondary Storage Devices

devices and computers over a network Optical disks

Digital video disk (DVD)

Magnetic ink character recognition (MICR) devices

Radio Frequency Identification (RFID)

and location to a receiver

Liquid crystal displays (LCDs)

Sharper colors and thinner displays Printers and

plotters: hard copy output

Digital audio player

instructions for the computer

interface with applications

input (e.g., keyboard)

perform specific tasks

Personal Application Software

Personal Application Software

Table 2.7: Examples of Personal Productivity Software

Personal Application Software

Table 2.7: Examples of Personal Productivity Software

teamwork, whether people are in the same

Enterprise Application Software

Table 2.10: Examples of Enterprise Application Software

Information, Decision Support,

increase profits or reduce costs

an organization could not successfully

The Hierarchy of Data

digit, or special symbol

characters that describes an aspect of a business object

The Hierarchy of Data

Figure 3.1: The Hierarchy of Data

Data Entities, Attributes, and

places, or things (objects) for which data is

Data Entities, Attributes, and